Revival of industries: ‘Pakistan needs intelligent initiatives’

Karachi, Pakistan - Ateeq-ur-Rehman, an economic and financial analyst, has emphasized the need for intelligent initiatives, planning, and targets to revive Pakistan's shrinking industries and address the declining manufacturing sector. He highlighted a range of bottlenecks that are negatively impacting industrial productivity, including high policy rates, energy tariffs, petroleum prices, reliance on imported raw materials and chemicals, rising shipping costs, and expensive loans with high credit costs.

To boost the economy, financial assistance should be made available on easy terms through financial institutions and emerging digital banks, as shrinking industries, substantial trade deficits, and a critical balance of payments crisis are significant concerns, according to Ateeq.

The analyst proposed mortgage financing with secure, long-term funding and competitive rates for individuals and households. He encouraged the government and financial institutions to give serious consideration to this lucrative and productive financial mode. Prime Minister Shehbaz Sharif's directive to expand and boost lending for agriculture, SMEs, and the housing sector was acknowledged.

Agriculture, the backbone of Pakistan's economy, requires continuous and uninterrupted access to finance at reasonable rates for farmers and peasants.

Ateeq pointed out the bumper cotton crop, which has increased by 27 percent to nearly 1.7 million bales as of August 31, 2026, thanks to favorable weather and government support. This improved crop quality and reduced reliance on imports. Access to affordable housing, particularly for low and middle-income groups, would be a significant step forward.

People who are traditionally excluded from formal banking can secure structured housing finance, moving from informal or inadequate housing to safer, more secure homes. Greater access to home ownership can alleviate the long-term financial burden of escalating rental costs, transforming a home into a long-term family asset, thereby enhancing household financial security.

SMEs, constituting 82 percent of the total economy, contribute 45 percent to the GDP and include vendors, shopkeepers, traders, importers, exporters, and middlemen. Historically neglected, SMEs have faced challenges with limited access to credit and high borrowing costs. The cost of credit is not only expensive but also difficult to secure.

The government's initiative to create an "access to finance plan 2026-28" is seen as a positive step, with lending to SMEs currently at Rs.1.067 trillion, targeting Rs.2 trillion by June 2028.